Huge Opportunity - Fast Money Midday (8/14/08)

by: Joan Wickham

Recap of CNBC's Fast Money, Thursday August 14.

Best-in-breed Financials - US Bancorp (NYSE:USB), Goldman Sachs (NYSE:GS), Ultra Financials (NYSEARCA:UYG), Financial Select Sector SPDR (NYSEARCA:XLF)

Guy Adami feels that in order to be successful, investors must find the best-in-breed banks. He said that US Bancorp is a “huge buying opportunity,” and that they have the best management in the industry. Tim Seymour disagreed, saying that he is “not in a position to get very excited about financials.” He continued, saying that with wages falling, the markets are as bad as in 1990, and he is “not buying this rally.” Moving to Goldman Sachs, Dylan Ratigan mentioned it has a rather “squirrelly,” nature lately. Adami said “don't bet against Goldman Sachs,” because they always crush earnings. Seymour suggested Ultra Financials, saying “I think you've got a shot here.”

Quint Tatro said that he is currently watching the Financial Select Sector SPDR because it is coming into the 50-day moving average. He said that GS “bothers me,” because it is slightly off the lows of the day. Jeff Macke said “whatever you want to do, the financials have been a trade all year.”

Commodities - U.S. Steel (NYSE:X)

Seymour thinks the commodities are “going to continue to ride.” Commodities are a “tough place for a short trade,” Seymour said. Adami said that “yesterday was not a reversal at all,” for oil and with the statistics and geopolitical tensions happening, crude should have gone up $8. Macke said that the most important aspect to look at is the “follow-through.” He said take a peek at U.S. Steel, which he said is “giving it back today.” Macke advised investors to show respect to the shippers because “they are following through.”

Retail - Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), Kohl's (NYSE:KSS), Target (NYSE:TGT)

On the retail side, Macke said that “Wal-Mart and Costco are setting the bar higher,” and that he is “remaining long.” On Kohl's, he said it has “rallied too far,” and has gotten ahead of itself. He advised investors to sell positions in Target because it is “rallying huge today,” but that was due only to Wal-Mart's reporting today.

Technology – Research In Motion (RIMM)

Bringing up technology, Seymour supported Research In Motion, saying that “everyone keeps upgrading this stock,” and it still has a long way to go.

Biotech - Celgene (NASDAQ:CELG)

Adami said that he still like Celgene and it “remains my favorite company.” He said that Celgene is the best in the space.

Investment Plays - Briggs & Stratton (NYSE:BGG), Nvidia (NASDAQ:NVDA), Watson Pharmaceuticals (WPI)

Jon Najarian spoke on several investment plays. He said to look into Briggs & Stratton because it “missed on earnings, missed on revenue and guided lower.” Najarian said if that is not tipping you off, nothing is. Najarian continued commenting on picks with unusual activity, saying to look at Nvidia, which had a “huge gap created from July 3 miss.” He said the stock has now surged into that gap. His next pick was Watson Pharmaceuticals, saying that it has “very strong, unusual activity.” Najarian wrapped up saying that he is long both Nvidia and Watson Pharmaceuticals.

Currency Trading

Macke said that his dollar exchange-traded fund was “working for me fine.” Seymour agreed, saying that the “fundamentals couldn't be better,” and that investors should “get long the dollar.” He expressed his concern about “a number of emerging market securities,” because he is seeing them come back down.

Recommended Actions - General Motors (NYSE:GM), Toyota (NYSE:TM), Home Depot (NYSE:HD)

Seymour said that General Motors is “being rewarded today,” up nearly 13% because the firm is speeding up its restructuring process. This prompted Macke to warn that if investors go long General Motors, they must short Toyota. Adami said to take a look at Home Depot because it is “showing life,” over the past couple of weeks and it currently has fair valuations.

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